Tuesday, May 4, 2010

The day of reckoning is coming!

Hey guys, am attaching the preferred count for the EUR, which is that of an ending diagonal wave 3 of (5). What makes me think of this as the preferred pattern at this point is:

1) the MACD seems to be making a positive divergence (although not inserted on this chart!),
2) Sentiment is extremely EUR negative (thin line between pessimism and too much of an overdose).

That's not to say that the EUR will not make new lows, but as we go lower, we are looking at a completion of 5 of (5), so you dont wanna see a rally like we had in the dow from its march lows ripping your shorts off as a shortseller. Better to be out of a trade when you wish you were in it, than being in a trade when you wish you were out. Positive and negative comments are welcome, for they are two sides of the same coin. Good luck everyone and god bless!


Anonymous said...

You might be right my friend. We might see a correction upto 1.32 until june then I guess we are down again around 1,28 around July then an other correction around August to 1,32 then we have an other 5 wave free wall until it is below 1. Cause EU doesnt have any organisation to cope with the situation. ECB is not flexible enough to deal with economies with different problems. The whole idea of EU was to restrict public spending based on common laws to prevent countries from budget deficit. One thing is ignored; The southern med countries always had corrupt goverments and now they owe their underpants.

NBD said...

I understand from the above view that we are heading for wave 4 of larger 3 now & then 5 of larger 3 before heading for the larger 4... more side ways move expected now...

Fundamentally, my take is that we shall not move significantly from here irrespective of the news flows ahead... Can make money by selling options (if I can say that...!)